Goldman's Tourre Wants Jersey-Based Firms In On SEC Suit

Law360, New York (September 1, 2011, 12:56 PM EDT) -- Goldman Sachs Group Inc. executive Fabrice Tourre on Wednesday sought to bring two Jersey, U.K.-based companies into the U.S. Securities and Exchange Commission’s suit in New York alleging he created a subprime securities product that was rigged to fail.

Tourre is accused of orchestrating the design of Abacus 2007-AC1, a collateralized debt obligation created largely using highly risky mortgage-backed securities, for the benefit of hedge fund Paulson & Co. Under a parallel credit-default swap deal, the hedge fund stood to reap huge rewards if Abacus tanked....